Published on 12/23/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.12 million step-up autocallables linked to basket
By Angela McDaniels
Tacoma, Wash., Dec. 23 – HSBC USA Inc. priced $6.12 million of 0% autocallable market-linked step-up notes due Dec. 22, 2022 linked to a basket of indexes consisting of the Euro Stoxx 50 index with a 33.34% weight, the S&P 500 index with a 33.33% weight and the Russell 2000 index with a 33.33% weight, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus a call premium of 8.45% per year if the basket closes at or above the initial level on Dec. 30, 2020 or Dec. 23, 2021.
If the notes are not called and the basket finishes above the step-up value, 130% of the initial level, the payout at maturity will be par plus the basket gain.
If the basket finishes at or below the step-up level but at or above the initial level, the payout will be par plus 30%.
If the final basket level is less than the initial level, investors will have one-to-one exposure to the basket’s decline.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying indexes: | Euro Stoxx 50 (33.34% weight), S&P 500 (33.33% weight) and Russell 2000 (33.33% weight)
|
| Amount: | $6,120,540
|
| Maturity: | Dec. 22, 2022
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If basket finishes above step-up value, par plus basket gain; if basket finishes at or below step-up level but at or above initial level, par plus 30%; if basket finishes below initial level, one-to-one exposure to decline
|
| Call: | Automatically at par plus call premium of 8.45% per year if basket closes at or above initial level on Dec. 30, 2020 or Dec. 23, 2021
|
| Initial levels: | 3,739.17 for Euro Stoxx 50, 3,205.37 for S&P 500 and 1,667.094 for Russell 2000
|
| Step-up value: | 130% of initial level
|
| Pricing date: | Dec. 19
|
| Settlement date: | Dec. 30
|
| Agent: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 40438B350
|
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